Philippine Business Bank books lower net income in third quarter
PHILIPPINE Business Bank (PBB) posted lower earnings in the third quarter due to a decline in trading gains as well as higher expenses.
In its quarterly report submitted to the local bourse, PBB said its net profit in the quarter ended Sept. 30 stood at P125.78 million, down from the P329.96 million it earned in the same period last year.
The lender’s net interest income, which includes earnings from loans and investments, among others, was at P752.3 million in the third quarter, 26.6% higher than the P594.44 million reported in the comparable year-ago period.
This, even as interest expense on deposit liabilities increased by 15.0% as the bank’s deposit portfolio grew by 23.8% to P67 billion in 2017. During the third quarter, PBB also incurred interest expense on bills payable amounting to P3.8 million, bringing the total interest expense to P223.7 million, up 17%.
However, a decline in other income caused the bank’s net earnings to decline. PBB’s other income dropped sharply to P88.25 million in the third quarter from P343.88 million, mainly on the back of a plunge in its net trading gain to P16.67 million from P291.06 million last year.
The lender’s expenses also rose to P572.84 million from P555.01 million.
For the first nine months, PBB’s net income was at P466.1 million, also down from the P669.96 million it booked in the comparable year-ago period.
The bank’s assets reached P80.2 billion as of Sept. 30, 14.2% higher than the end-2016 figure of P70.3 billion. Loans and other receivables made up 81.1% of the bank’s total assets.
Meanwhile, PBB’s capital adequacy ratio stood at 14.9% at the end of the third quarter. Its non-performing loan ratio decreased to 2.37% as of Sept. 30 from 2.52% at end-2016.
PBB shares closed at P12.64 each on Monday, down 16 centavos or 1.25% from Friday’s finish.